Donald Trump Imposes 50% Tariff on Indian Exports 27 August 2025 Onwards – Will It Escalate to a Trade War?

The Trump administration has imposed a notable 50% tariff, resulting in a broad escalation of trade tensions between the USA and India.  

Tariff rate now stands 50% after an extra 25% has been applied. According to the Department of Homeland Security, the levies will be raised on Indian goods. The goods that are entered for consumption, or withdrawn from the warehouse for consumption, on or after 12:01 am Eastern Daylight Time on August 27, 2025. To avoid the tax, exporters need to dispatch their goods before the deadline. 

U.S. President Donald Trump declared that tariffs on Indian goods would be doubled to 50% in response to India’s continued purchases of Russian crude oil. The administration left a 21-day window open for negotiations in the hopes of reaching an agreement. But this most recent increase comes on top of the 25% levy that was implemented in late July. 

According to the report of TOI at that time, nearly half of India’s $87.3 billion goods export to the US will be subjected to a 50% tax. 

White House Press Secretary Karoline Leavitt stated earlier this month that the decision was made in an effort to put pressure on India to assist in resolving the conflict between Russia and Ukraine. 

India has defended its purchases from Russia and suggests that New Delhi plans to keep up the trade.

Russian oil imports are the reason behind the 50% tariff, which indicates growing tension in U.S.-India trade relations. India will protect its energy needs even as the United States seeks to apply pressure. Whether this reduces tensions or intensifies into a more serious trade dispute will become clear in the upcoming weeks.

Related: Trump Raised Tariffs to 50 Percent on Indian Goods, and China Backs India’s Right to Choose